F&N may have a bullish breakout

F&N has been consolidating between RM6.80 and RM7.80 for the past 1 year. Recently, the company has announced that it will be investing RM430 million to build a dairy production plant each in Malaysia & Thailand under its expansion plan. This follows its successful acquisition of Nestle's canned milk, UHT and chilled dairy & juice business , which was completed in February.

The share price has also recovered steadily since making a low of RM6.75 in August selldown. Today, it managed to surpass the RM7.85 level; thus giving a bullish breakout for the stock. This breakout is, however, not accompanied by significant volume. If this breakout can sustain, F&N may hit a high of RM9.50-10.00 over the next 6 months. Incidentally, Aseambankers Malaysia Equity Research has placed a value of RM10.00 for F&N, and called a BUY at RM7.55 (go here).


Chart : F&N's weekly chart as at September 26 (courtesy of Quickcharts)